Sell Gap Inc. (NYSE: GPS)

Gap’s filled our bag with profits. The stock is up 48% since my late May recommendation and is trading two points above my $31 target.

Although the company has done a tremendous job of re-igniting revenue growth, particularly at its Old Navy brand, the stock’s valuation fully reflects that success.

A 48% gain in a bit more than 6 months (an 89% annualized gain) should be booked. Retail stocks rarely move up in a straight line and I expect we’ll have more opportunities to make money in this stock.

As always, I’m eager to hear how this trade worked out for you. Please consider taking this brief survey to let me know.